California passes landmark rules to curb auto emissions

Transforming the next decade of America's auto industry, the California Air Resources Board on Friday approved historic new rules that require 15 percent of new cars sold in California by 2025 run on electricity, hydrogen or other systems producing little or no smog.

The rules also require automakers to cut greenhouse gas emissions by 50 percent on all new vehicles by 2025 and tailpipe emissions of soot and smog by roughly 75 percent over the same time period.

The greenhouse rules are nearly identical to new national rules being developed by the Obama administration -- and will result in new cars averaging 54.5 miles per gallon by 2025, double today's fleet average for new cars.

"If you talk to anybody, they wish they could drive more efficient cars with less pollution," said Santa Clara County Supervisor Ken Yeager, an air board member.

"People are spending way too much for gas, and they wish they didn't have to spend as much," he said. "The fact we are going to change what consumers can buy and what they can drive -- which is really what they want -- is one of the most important things we are doing."

Despite the dramatic changes for gasoline and diesel vehicles, the provisions that gained the most widespread attention will force every major automaker, starting in 2018, to increase in showrooms the number of electric vehicles, like the Nissan Leaf, and plug-in hybrid vehicles, like the Chevrolet Volt, along with some hydrogen-fuel-cell vehicles. The effect would be that 1.4 million such vehicles would be sold by 2025 if the rules are successful. Today there are only about 10,000 in the state.

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The air board, established in 1967 by Gov. Ronald Reagan, has for more than 40 years set standards to reduce pollution from cars. Its 11 members, appointed by the governor, made California the first state to ban leaded gasoline, require catalytic converters and smog checks and require reductions in greenhouse gases.

Unlike in past years, the auto industry did not oppose the rules. GM, Ford, Toyota, Tesla and other companies said they support the rules because they mirror new federal rules and because they are making the cars already, with roughly 40 electric and plug-in models due out in the next three years.

Mark Perry, Nissan's North American director of advanced technology, noted his company has sold 22,000 all-electric Nissan Leafs worldwide since introducing the vehicle last year. He said there is a three-month wait to buy the cars, and Nissan is expanding a factory in Tennessee to build as many as 150,000 Leafs a year.

"This is a mass-market launch for us, and we are moving to mass-market adoption," he said.

Several board members and electric car enthusiasts tried, but failed, to change a provision in the rules that allows automakers to receive credits and build fewer electric vehicles between 2018 and 2021 if they exceed upcoming federal standards for greenhouse gas emissions from new vehicles.

One auto industry group, the California New Car Dealers Association, said it opposed the rules. It sought unsuccessfully to get the board to give credit to regular hybrid vehicles, such as Toyota Priuses, toward the electric vehicle requirement.

"Consumers do not make purchasing decisions based on regulatory mandates," said Jonathan Morrison, the association's director of regulatory affairs.

The air board noted it will revisit the rule in five years -- and can change it based on how the market develops. But its staff members pointed to a study showing that while the rules would add $1,900 to the price of an average vehicle by 2025, they would save $5,900 in gasoline costs over its life.

Also, Europe, Japan and other areas already are requiring sharp increases in gas mileage and more alternative vehicles to address global warming and smog concerns, so automakers are moving toward the standards, air board officials said.

"The world is heading in the direction of getting off petroleum, and they want to sell cars," said board Chair Mary Nichols.

The rules were endorsed by the Silicon Valley Leadership Group, along with the American Lung Association, American Heart Association, American Cancer Society and nearly every major environmental organization.

"Under these strong new rules, cars sold in our state will produce dramatically less pollution, cause fewer asthma attacks and less lung damage, and cut our dependence on dirty oil," said Jane Warner, CEO of the American Lung Association in California.

Contact Paul Rogers at 408-920-5045.

CALIFORNIA'S CLEANER CARS

Cut smog-forming emissions 75 percent from new cars

Cut greenhouse gas emissions 50 percent from new cars

Require 15 percent of new cars sold in California be either electric, plug-in hybrid or fuel-cell

Mirror federal standards that will result in the fleet average for new cars to reach 54.5 mpg